Investment Essay Example | Topics and Well Written Essays - 250 words - 1

Investment - Essay Example Thus why they have steady feature for portfolio. Bonds also have a better planning. This is due to the higher stability in their returns as opposed to real estate. It is easier for a person to plan for his or her future. Having the knowledge that the amount you invested in bonds will pay you the interest it has earned in a year enables a person to set a target on the savings. Also he or she will be in a better position to estimate his or her return on investment. A house may is not an investment, this is because houses are not efficient ways of investing. They usually cost more to buy and to manage. Though it may seem as if it will have more returns in future this does not hold because of the cost that was incurred in purchasing it, renovating, insuring, repairing and paying taxes on it. All this costs will not make the house to appreciate in price in reality. Even if I was to sell the house in the future the profit I will earn is not a true one but it will just be a large refund of the cost incurred. I do not view jewelry as an investment because not all the times it appreciates in values. Many jewels although they seem to be pretty they may not be having any significant value in them. Most of the jewels are only covered with precious materials and the underneath material might be of less value. Others are not made of pure materials thus making them depreciate it value. Also other factors that determine the value of the jewelry are: when you purchase jewelry from a trader, its mark up is rather heavy. Also the size of the jewelry will determine how it is going to appreciate. A large size will appreciate more than a small one. A high quality jewel will have more value as compared to a low quality one. Lastly the jewel will appreciate depending on its history and uniqueness. The one which was made by a famous designer is likely to have more value. The more rare the jewel